This article first appeared on GuruFocus .
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Q4 Revenue Growth:28.4% year-on-year increase.
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Research and Analytics Segment Growth:56.8% year-on-year increase.
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Ratings Business Growth:10.6% year-on-year increase.
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Consolidated PBT (before exceptional items and tax):72.8 crores.
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FY26 Revenue Growth:20.4% year-on-year increase.
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Ratings Segment Growth for FY26:14.2% year-on-year increase.
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Research and Analytics Growth for FY26:29.8% year-on-year increase.
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PBT Growth for FY26:10% increase.
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Dividend Recommendation:Rs. 105 per share, including Rs. 35 per share special dividend.
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Warning! GuruFocus has detected 1 Warning Sign with BOM:532835.
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Release Date: May 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ICRA Ltd ( BOM:532835 ) reported a strong Q4 performance with consolidated revenue increasing by 28.4% year-on-year.
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The Research and Analytics segment recorded a significant 56.8% year-on-year increase, driven by the acquisition of Intellix and sustained demand for analytics solutions.
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The ratings business saw steady growth of 10.6% year-on-year, supported by improved credit activity and deeper market engagement.
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ICRA Ltd ( BOM:532835 ) completed the acquisition of Fintelix, which is expected to drive growth in the next two to three years.
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The company is making steady progress on its AI roadmap, deploying AI-powered agents in select processes to enhance operational efficiency.
Negative Points
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The knowledge services business saw some moderation in growth due to the discontinuation of certain engagements and increasing automation trends.
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The ongoing West Asia conflict and elevated energy prices pose a downside risk to growth in the near term.
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The potential development of El Nino conditions and weak monsoon forecasts have dulled the agricultural outlook and rural prospects.
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The ratings business growth was materially lower than peers, raising concerns about competitive positioning.
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There is uncertainty around the resolution of geopolitical conflicts, which could impact GDP growth and macroeconomic outcomes.
Q & A Highlights
Q: Why was the ratings business growth lower than peers this quarter? A: L. Shivakumar, Executive Vice President - Business Development, explained that ICRA's growth is in line with peers when considering the broader market context. The company has focused on growth segments over the last four years, which has played out well. The strategy is to continue focusing on these segments, balancing between bank credit and bond markets, which are influenced by interest rates and geopolitical factors.
Q: Can you break down the growth in the non-ratings segment, excluding Fintelix? A: Shailendra Mruthyunjayappa, CEO of ICRA Analytics, noted that excluding Fintelix, growth was muted in knowledge services, but other smaller segments like RMS and market data saw growth. Fintelix was added in the second half of the year, contributing to the overall numbers.
Q: What is the outlook for ratings growth in the current year, considering recent borrowing activity? A: Ramnath Krishnan, Group CEO, stated that while bond market activity may be subdued due to high yields, bank credit is expected to grow well, driving growth. No significant slowdown has been observed in the ratings business in the first months of the financial year, despite geopolitical headwinds.
Q: How will the revenue mix shift in the research and analytics segment affect margins? A: Shailendra Mruthyunjayappa explained that product-led businesses like BankTech typically have EBITDA margins between 20% to 35%, depending on geography. The shift in revenue mix towards these areas will influence overall margins, with a focus on achieving industry-standard margins.
Q: What are the synergies expected from the Fintelix acquisition? A: Shailendra Mruthyunjayappa mentioned that integration is progressing as planned, with products being combined into a comprehensive suite. This integration is expected to expand customer relationships and solution offerings, particularly with large clients, over the next two years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
